Fixed deposit interest rates have fallen over the last one year. Bank no longer offer interest rates of around 8% and you have to look beyond banks. The best interest rate that SBI offers is 6.5%.

Investors who wish to park money for the short to medium term, can consider these fixed deposits.

Bajaj Finance fixed deposits online

Bajaj Finance offers an option to invest in fixed deposits online, and you can transfer money through NEFT and RTGS. A 12-23 month deposit offers you an interest rate of 8.00 per cent, while a 24-35 month deposit offers you an interest rate of 8.05 per cent, while a 36-month deposit offers an interest rate of 8.35 per cent.

This is not bad at all considering that interest rates in banks at the moment are very low. Investors looking for a medium term can invest in the same. The deposits are rated AAA, which means that they are safe for investors to consider.

Mahindra Finance

Mahindra Finance too offers a fixed deposit online. You can get an interest rate of 8.70 per cent on a 33-month deposit with an effective yield of 9.33 per cent.

This is very attractive, especially when one considers that interest rates in the economy are very low. A 4-month deposit also offers an interest rate of 8.70 per cent, with a overall yield of 9.40 per cent.

However, these deposits are applicable only for deposits below Rs 1 crores. The deposits here again are AAA rated and are hence very safe. Investors should consider this as a good option given that interest rates in the economy are not very high.

Yes Bank

Yes Bank too offers an attractive interest rate on its fixed deposits. For a 12-month 10 deposit, the interest rate offered is 7.85 per cent. This is not bad at all, given that most government owned banks offer an even lower interest rates.

The effective yield on this deposit works to as much as 8.08 per cent. You can also apply online for lower tenures for 9 months to 1 year where the interest rate offered is 7.15 per cent.

IDFC First Bank

You can apply for fixed deposits online for IDFC First Bank as well. The 1-year deposit at the bank offers an interest rate of 8 per cent, while 2-5 year deposit offers a slightly lower interest rate of 7.5 per cent.

IDFC First bank deposits are safe, as it is a commercial bank. It recently merged with First Capital.